How R&D Tax Credits can revitalise loss-making businesses


The loss-making phase.


It’s a challenge that all businesses have faced at one point or another.


Sometimes, it may feel like quicksand – the harder you try to get out, the deeper you sink in.


But every cloud has a silver lining.


Within the world of research and development, a government incentive exists that favours loss-making companies, providing them with a great deal of financial support.


Introducing - R&D Tax Credits!



What are R&D Tax Credits?


R&D Tax Credits were introduced to offer financial reward for UK innovation. After a startup or SME surpasses their first financial year, R&D Tax Credits allow them to claim back a large portion of the research & development expenditure that was used to build their project.


This scheme opens the door for game-changing re-investment into the growth of your product or service.


The amount of R&D spending a business is entitled to reclaim depends on their financial position.


If your SME is turning over a profit, your R&D Tax Credit claim can get you up to 25% of eligible costs back. This will be rewarded in the form of a tax deduction.


However, if your loss-making, the government allows up to 33% of research and development expenditure to be reimbursed as cash, direct into your bank account.


So, loss-making R&D projects in the UK are not only offered the most financial support from R&D Tax Credits, but they’re also one of the only instances where support is given in the form of cash – ready to use on the next business strategy.


By taking advantage of R&D Tax Credits whilst your loss-making, you’ll inevitably speed up the process of reaching your profitable milestone.


If your research and development project is yet to make profit, and you’re not claiming R&D tax relief, you’re missing out on the best possible support scheme.